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Luminex Closes Nanosphere Buyout, Maintains FY16 View

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Luminex Corp. has finally closed the acquisition of Nanosphere Inc for $1.70 per share on Jun 30. Notably, Nanosphere will function as a wholly ¬owned subsidiary of Luminex post the transaction.

The deal was initially announced by Luminex on May 16 at $1.35 per share, but later on May 22 the bid was increased by 35 cents per share.

Post completion of the acquisition, Luminex maintains its full-year 2016 revenue guidance range of $28 million to $30 million. The company also anticipates revenue contribution from Nanosphere in the band of $13 million to $16 million.

Nanosphere is a well known company in the healthcare economics space with a strong clientele engaged in the development of molecular diagnostic tools. The company offers a unified solution for sensitive genomic and protein testing by Verigene Technology, an important platform in the molecular diagnostic testing platform.

LUMINEX CORP Price and Consensus

LUMINEX CORP Price and Consensus | LUMINEX CORP Quote

We believe the acquisition will now enable Luminex to utilize Nanosphere’s high-end protein testing technology and expand its customer base, especially in hospital-based laboratories and academic research institutions.

The diversified product portfolio that evolves post the acquisition will help Luminex combat industry challenges and drive penetration in the molecular microbiology and diagnostic markets.

In the global scenario, data from Markets and Markets reveal that the molecular diagnostics market is estimated to grow at a CAGR of 9.3% to reach $9,333.8 million by 2020. Such market trends can also prove accretive for Luminex, as its newly acquired company enjoys a dominant position in the field of molecular diagnostic testing.

Zacks Rank & Other Key Picks

Luminex carries a Zacks Rank #3 (Hold).

Other favorably ranked stocks in the broader medical sector include Masimo Corporation (MASI - Free Report) , Mesa Laboratories Inc (MLAB - Free Report) and CryoLife Inc . All the three stocks sport a Zacks Rank #1 (Strong Buy).

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